Compensation Glossary

Sales Compensation Plans

Sales compensation plans tend to differ substantially from other types of compensation plans due to the fact that sales results are usually more measurable than other output expectations. Compensation for sales jobs typically involve incentive programs or commission formulae. Compensation plans for sales jobs may fall into any of the following categories: 1) commission only, 2) salary only, 3) commission–plus-draw, 4) salary-plus-commission, or 5) salary-plus-bonus.